Institutional investors eye P2P lending platforms

Author: Zoe Thomas | Published: 19 Jun 2015

A new study has found that institutional investors are increasingly considering putting their capital to work through peer-to-peer lending platforms.

Marketplace lending, or peer-to-peer lending, connects investors with individuals and small businesses requesting lines of credit on online platforms. Platforms such as Lending Club, which went public in 2014, act as intermediaries to link borrowers with credit and run checks on their credit worthiness.

According to a survey by Richards Kibbe & Orbe and Wharton FinTech, a growing number of hedge funds see this space having potential for strong returns. But only 29% of survey respondents said they had already made investments. Most are waiting for the industry to build a longer track record and create a secondary market to spur liquidity.



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